Can Petro Stopping Center cancel unauthorized agreements or subleases entered into by a Petro Stopping Center franchisee?

According to Petro Stopping Center's 2025 Franchise Disclosure Document, Petro Franchise Systems LLC has the power to cancel or terminate any unauthorized agreements or subleases entered into by a franchisee. This authority is granted to Petro Stopping Center for any cause or ground that would entitle them to cancel the agreement.

This provision grants Petro Stopping Center significant control over the franchisee's operations and contractual relationships related to the Petro Center. It ensures that franchisees do not enter into agreements that could negatively impact the brand or the Petro System. The franchisee must obtain prior approval from Petro Stopping Center before entering into any lease, sub-lease, franchise agreement, or management agreement with any third party in connection with any portion of the Site or their Petro Center.

Petro Stopping Center also reserves the right to require the franchisee to delete, revise, or insert provisions into such agreements as deemed necessary to protect their rights under the Franchise Agreement. Once an agreement is approved, the franchisee cannot modify or amend it without obtaining prior approval from Petro Stopping Center. This level of oversight is typical in franchising, as franchisors need to maintain brand consistency and protect their trademarks and systems.

In practical terms, a prospective Petro Stopping Center franchisee needs to be aware that they cannot independently enter into agreements or subleases without the franchisor's consent. Failure to comply with these requirements could result in the termination of the Franchise Agreement. Therefore, it is crucial for franchisees to maintain open communication with Petro Stopping Center and seek approval for any proposed agreements or subleases.